Recs

7

5-Star Stocks Poised to Pop: Dow Chemical

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Based on the aggregated intelligence of 115,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Dow Chemical (NYSE: DOW  ) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.

With that in mind, let's take a closer look at Dow Chemical's business and see what CAPS investors are saying about the stock right now.

Dow Chemical facts

Headquarters (Founded)

Midland, Michigan (1897)

Market Cap

$31.69 billion

Industry

Diversified Chemicals

TTM Revenue

$59.02 billion

Management

CEO Andrew Liveris (since 2004),

CFO Geoffery Merszei (since 2005)

Return on Capital (average last three years)

20.23%

Competitors

DuPont (NYSE: DD  ) ,

Monsanto (NYSE: MON  )

CAPS members bullish on DOW also bullish on

General Electric (NYSE: GE  ) ,

Johnson & Johnson (NYSE: JNJ  )

CAPS members bearish on DOW also bearish on

Ford Motor (NYSE: F  ) ,

General Motors (NYSE: GM  )

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 358 of 375 of the All-Star members who have rated Dow Chemical -- some 95% -- believe the stock will outperform the S&P 500 going forward. These All-Star bulls include choppaz4life and saxonglass, both of whom are ranked in the top 10% of our community.

Last month, choppaz4life noted that Dow Chemical is a "Long term winner with a decent strong dividend. Like it or not chemicals are in and on and make up almost everything we touch on any given day."

In a pitch in February, saxonglass shares that bullish sentiment, highlighting the stock as a rather unnoticed restructuring play:

I'm not sure people realize the fundamental change that has occurred in [Dow Chemical]'s business model. Several joint venture companies have been formed and virtually every one will provide [Dow Chemical] with distinct advantages relative to raw materials and markets. The Saudi JV provides a stable, low cost supply of petro. The JV in Brazil with a stable raw material for many plastic products. [Dow Chemical] should be less cyclical than in the past.

What do you think about Dow Chemical, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 115,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Best Odds in the Universe!
If you're interested in a 98.79% chance at beating the market... and a 70.84% chance at DOUBLING the market's return – Motley Fool Supernova could be just what you're looking for. And get this: We arrived at these odds from 10,000 random back-tested portfolios composed of Motley Fool Co-founder David Gardner's personal stock picks.

It's why David recently handpicked a small team of world-class portfolio managers. You see, he thinks these odds can get even better! And he'd like to prove it to you...

Simply enter your email address. And the answer to the question everybody is asking will be delivered to your inbox!

Dow Chemical and Johnson & Johnson are Motley Fool Income Investor recommendations. Try any of our Foolish newsletters today free for 30 days.

Foolish contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool's disclosure policy always gets a perfect score.


Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

DocumentId: 736018, ~/Articles/ArticleHandler.aspx, 2/15/2012 12:51:21 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 2 hours ago Sponsored by:
DOW 12,878.28 4.24 0.03%
S&P 500 1,350.50 -1.27 -0.09%
NASD 2,931.83 0.44 0.02%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

2/14/2012 4:00 PM
DOW $33.60 Down -0.59 -1.73%
The Dow Chemical C… CAPS Rating: ****
GM $25.40 Up +0.06 +0.24%
General Motors Com… CAPS Rating: **
JNJ $64.61 Down -0.07 -0.11%
Johnson & Johnson CAPS Rating: *****
MON $76.94 Down -0.99 -1.27%
Monsanto Company CAPS Rating: ****
DD $49.66 Down -0.94 -1.86%
E.I. du Pont de Ne… CAPS Rating: ****
F $12.48 Down -0.06 -0.48%
Ford CAPS Rating: ****
GE $18.94 Down -0.13 -0.68%
General Electric C… CAPS Rating: ****

Advertisement